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ImmunoGen (IMGN) announced encouraging efficacy and favorable tolerability data from the FORWARD II cohort assessing mirvetuximab soravtansine in combination with Merck's (MRK) anti-PD-1 therapy pembrolizumab in patients with platinum-resistant epithelial ovarian cancer. In the subset of 8 patients with medium or high folate receptor alpha expression levels, the confirmed overall response rate was 63%, with a median progression-free survival of 8.6 months. For all patients, the confirmed ORR was 43%, with a median PFS of 5.2 months; patients in this cohort had received a median of 4.5 prior lines of systemic therapy, with 64% of patients receiving 4 or more prior lines. As previously reported, at full dosing, the combination of mirvetuximab and pembrolizumab demonstrates favorable tolerability, consistent with the known safety profiles of each agent, with primarily mild to moderate adverse events observed. Based on these data, ImmunoGen is enrolling an additional 35 patients with medium or high FRalpha expression levels in an expansion cohort in the FORWARD II study.

H.C. Wainwright analyst Debjit Chattopadhyay started ImmunoGen with a Buy rating and $18 price target. The analyst believes ADC's, a multi-component system involving a targeting antibody linked to cytotoxic agents, have a "significant and hitherto underappreciated role to play in the war against cancer." He believes ImmunoGen has a differentiated ADC platform.

01/31/18

01/31/18INITIATION

On The Fly: Top five analyst initiations

Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Lumentum (LITE) was initiated with a Buy at UBS while Oclaro (OCLR) was initiated with a Sell. 2. ImmunoGen (IMGN) initiated with a Buy at H.C. Wainwright. 3. Salesforce (CRM) and Workday (WDAY) were initiated with a Buy at Cleveland Research. 4. Cooper Tire (CTB) was initiated with a Buy at Longbow, while Goodyear Tire (GT) was initiated with a Neutral. 5. Acacia Communications (ACIA) initiated with a Buy at UBS. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.

02/08/18

RBCM

02/08/18INITIATIONTarget $12RBCMOutperform

ImmunoGen assumed with an Outperform at RBC Capital

RBC Capital analyst Kennen MacKay assumed coverage of ImmunoGen with an Outperform rating and a price target of $9. MacKay notes "mirvetuximab's market opportunity in 2L+ platinum-resistant/refractory folate receptor alpha positive ovarian cancer", modeling potential $850M in peak risk-unadjusted sales. MacKay also points to the positive impact of U.S. tax changes and believes 2018 could be a "transformational year" with a scheduled futility analysis planned ahead of top-line data in the first half of 2019.

03/21/18

RBCM

03/21/18NO CHANGETarget $16RBCMOutperform

ImmunoGen price target raised to $16 from $12 at RBC Capital

RBC Capital analyst Kennen MacKay raised his price target on ImmunoGen to $16 and kept his Outperform rating. MacKay cites the Mirvetuximab combo opportunities as a potential catalyst ahead of the SGO data which he contends may provide initial indications of the combo's synergistic activity.

MRKMerck

$53.41

-0.71 (-1.31%)

03/02/18

LEER

03/02/18NO CHANGETarget $29LEEROutperform

Leerink ups Heron Therapeutics target to $29 after competitor setback

Leerink analyst Ami Fadia raised her price target for Heron Therapeutics (HRTX) to $29 from $27 after Tesaro (TSRO) announced earlier this week that it has withdrawn all promotional support for IV Varubi, based on numerous reports of anaphylaxis. Heron's Cinvanti, Tesaro's Varubi and Merck's (MRK) Emend are the only three branded NK-1 antagonists in the market today for chemo induced nausea and vomiting, Fadia tells investors in a research note. With Emend expected to go generic soon, Cinvanti will be the sole marketed branded agent, the analyst adds. She increased her 2023 estimate for Cinvanti from $150M to just under $200M and keeps an Outperform rating on Heron Therapeutics. The analyst continues to see upside for the stock ahead of the two Phase 3 trials for HTX-011 expected to read out in Q2.

03/12/18

LEER

03/12/18UPGRADELEEROutperform

Merck upgraded to Outperform from Market Perform at Leerink

03/12/18

LEER

03/12/18UPGRADETarget $66LEEROutperform

Leerink upgrades Merck to Outperform ahead of KN-189 presentation

Leerink analyst Seamus Fernandez upgraded Merck (MRK) to Outperform from Market Perform with an unchanged price target of $66. The shares closed Friday up 38c to $55.14. Keytruda will continue to dominate the first-line non-small cell lung cancer market, Fernandez tells investors in a research note. Following his firm's lung cancer survey, the analyst believes Merck will deliver upside to consensus Keytruda estimates along with positive earnings leverage in the second half of 2018 and 2019. He thinks KN-189 likely will show a clinically meaningful overall survival benefit for the Keytruda plus chemo combo in all patients, including a strong benefit in patients with moderate or low PD-L1 biomarker levels. Fernandez does not believe Bristol-Myers' (BMY) Opdivo and Yervoy combo will supplant Keytruda as the market leader. The analyst thinks now is the time to own shares of Merck.

03/12/18

03/12/18UPGRADE

On The Fly: Top five analyst upgrades

Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Time Warner (TWX) upgraded to Buy from Neutral at UBS with analyst John Hodulik saying while he expects the takeover by AT&T (T) to receive regulatory approval, he believes the current environment would make Time Warner's assets "highly attractive" to other media companies and Internet-based competitors were the deal to be blocked. 2. Carlyle Group (CG) and Apollo Global (APO) were upgraded to Buy from Neutral at Citi. 3. Merck (MRK) upgraded to Outperform from Market Perform at Leerink with analyst Seamus Fernandez saying Keytruda will continue to dominate the first-line non-small cell lung cancer market. 4. SAP (SAP) upgraded to Outperform from In Line at Evercore ISI with analyst Stewart Materne III saying that he believes the risk/reward is more attractive at current levels following the stock's 6% pullback. 5. Aratana Therapeutics (PETX) upgraded to Buy on valuation at CL King with the firm citing favorable risk/reward. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.